Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the top beats from the S&P 500 π
*Click the image to enlarge it
The best earnings reaction came from General Motors $GM, one of the world's largest auto manufacturers. The company reported a double beat, resulting in a +6 reaction score for shareholders.
In the report, they posted revenues of $48.59B, exceeding the expected $45.04B, and earnings per share were $1.70, above the expected $1.41.
Coming in second place was the world's second-largest aerospace and defense stock, RTX Corp. $RTX. They beat expectations across the board and had a +4.43 reaction score.
They reported revenues of $22.48B, compared to the expected $21.30B, and earnings per share of $1.70, beating the expected $1.41.
Here are the bottom beats from the S&P 500 π
The worst earnings reaction came from the tobacco behemoth Philip Morris $PM, which reported a double beat, but suffered a -2.73 reaction score.
Revenue and earnings per share came in higher than expected at $10.85B and $2.24, respectively.
After beating headline expectations, Quest Diagnostics $DGX had the second-worst reaction score of -2.60.
They reported revenues of $2.82B, compared to the expected $2.74B, and earnings per share of $2.60, beating the expected $2.50.
Now let's dive into the fundamentals and technicals π
GM had its best earnings reaction ever π₯
General Motors had a +14.9% post-earnings reaction, and here's what happened:
The company achieved its highest U.S. market share since 2017 at 17.0%, with 710K deliveries and strong margins. Additionally, the China operations returned to profitability, and market share grew to 6.8%.
U.S. electric vehicle sales hit a record 67,000 units, giving them 16.5% of the total U.S. EV market.
In addition to the blockbuster report, the management team increased its forward guidance across the board.
This was a shockingly flawless report from a company that has been troubled for decades. They are firing on all cylinders, and the market loves it!
In reaction to this report, the stock jumped nearly 15% for its best earnings reaction ever, and closed at a fresh all-time high. Additionally, this was the decisive resolution of a massive multi-year accumulation pattern and the beginning of a brand-new primary uptrend.
With all of the extra cash they're spitting out, the board approved a new $6B share repurchase program. This represents over 13% of the total market capitalization and is one of the largest in the market.
So long as GM holds above 64, the path of least resistance is likely to remain higher for the foreseeable future.
PM had its second consecutive negative earnings reaction π»
Philip Morris had a -3.8% post-earnings reaction, and here's what happened:
Organic net revenue grew 5.9%, and adjusted operating income increased by 7.5% year-over-year.
For the 18th consecutive year, the company increased its quarterly dividend. It's now $1.47 per share, an 8.9% increase.
In addition to another strong earnings report, the management team increased its forward guidance for the top and bottom lines.
Everything about this earnings report was spectacular, yet the market punished shareholders for it. This was a textbook beat/beat/drop, signaling that all of the good news was already priced in.
We believe this is a well-deserved digestion of gains. From the April 2024 low to the June 2025 high, the price more than doubled. Remember, we're talking about a tobacco stock here, not a speculative growth stock.
As you can see on the chart, the stock had its best earnings reaction ever earlier this year, and that gap is now serving as support. This is a key level that the bulls must defend if they want to keep the long-term uptrend alive.
So long as PM holds above 145, the path of least resistance is likely to remain sideways for the foreseeable future.
Have a good Hump Day
-The Beat Team
P.S. The crypto market just had the biggest liquidation event ever. On Thursday, Louis Sykes will reveal which cryptos will emerge from the ashes, and which won't.
